Torys LLP acted as counsel to CIBC on the deal.
On September 2, 2021, CIBC has signed a long-term agreement to become the exclusive issuer of Costco Mastercards in Canada, expected to start in early calendar year 2022.
CIBC will also acquire the existing Canadian Costco credit card portfolio, which meets the needs of millions of Canadians and has over C$3 billion in outstanding balances. Mastercard will remain the exclusive payment network for the Costco co-branded credit card in Canada and acceptance in Costco warehouses in Canada.
CIBC expects the purchase of the current Costco co-brand credit card portfolio to close and convert to CIBC in early calendar year 2022, subject to customary closing conditions. CIBC will then begin issuing the new CIBC Costco Mastercard to the converted portfolio and take new applications both online and in Costco Canada warehouses.
CIBC is a leading North American financial institution with 10 million personal banking, business, public sector and institutional clients.
Costco Wholesale is a multi-billion dollar global retailer with warehouse club operations in eleven countries and operates 813 warehouses worldwide with 105 warehouses across Canada.
Mastercard is a global technology company in the payments industry.
The Torys team consisted of Krista Hill (Picture) and Daniel Masliyah (M&A), Cameron Koziskie and Ebad Rahman (co-brand credit card arrangements and payment network arrangements), Peter Aziz, Trish McMahon and Matthew Angelus (financial services), Eli Monas (bank regulatory), Ed Fan (IP), Teresa Reguly (privacy), John Tobin, Richard Johnson and Tamara Jewett (tax) and Omar Wakil (competition).
Involved fees earner: Matthew Angelus – Torys LLP; Peter Aziz – Torys LLP; Edward Fan – Torys LLP; Krista Hill – Torys LLP; Tamara Jewett – Torys LLP; Richard Johnson – Torys LLP; Cameron Koziskie – Torys LLP; Daniel Masliyah – Torys LLP; Trish McMahon – Torys LLP; Eli Monas – Torys LLP; Ebad Rahman – Torys LLP; Teresa Reguly – Torys LLP; John Tobin – Torys LLP; Omar Wakil – Torys LLP;
Law Firms: Torys LLP;
Clients: CIBC Capital Markets;